Ichor Holdings' Q2 2025: Navigating Contradictions in Hiring, Margins, and Market Share

Hiring and retention challenges, gross margin expectations, market share and hiring/retention challenges, demand and market share expectations, proprietary product impact on gross margin are the key contradictions discussed in Ichor Holdings' latest 2025Q2 earnings call.



Revenue Performance and Customer Demand:
- Ichor Holdings reported revenues of $240 million for Q2, reaching the upper end of expectations and reflecting a modest acceleration of customer demand into the first half of the year.
- The revenue upside was driven by strong demand in the lower-margin gas panel integration business, despite the expected impact from a slowing EUV build and reduced investments by a major U.S. semiconductor manufacturer.

Gross Margin Challenges and Hiring Issues:
- Ichor's Q2 gross margin was 12.5%, at the lower end of expectations, primarily due to hiring challenges limiting the output of machine components.
- The hiring challenges, particularly in retaining skilled workers in the U.S. machining operation, affected the output volumes and prevented the company from achieving the expected gross margin ramp.

New Product Qualifications and Proprietary Component Strategy:
- Ichor achieved a major milestone with the successful qualification of its flow control product at a key end-user, marking its first end-user qualification for this product line.
- The company's strategy to increase internal supply and qualify proprietary components like valves and flow controllers is aimed at expanding its addressable markets and enhancing value across the semiconductor supply chain.

CEO Succession and Strategic Focus:
- Ichor announced its CEO succession plans, with current CEO Jeff Andreson remaining in position until a successor is identified.
- The focus remains on transforming the company's profit generation through new product wins, internal component supply scaling, and cost reduction efforts to drive higher gross margins.